They added: "Improvements in mortgage
equity withdrawal, planning permission and credit growth suggest that demand for projects remains healthy.
Most lenders offer loans for home purchase but increasingly different products are emerging such as loans for self-construction and for
equity withdrawal, which continue to be expensive and beyond the reach of the average Tanzanian," the report said.
M2 EQUITYBITES-December 30, 2013-UK housing
equity withdrawal still negative
The Bank added: "The dramatic collapse in the Irish property market means all of these factors have been reversed, moving the household sector from one of net
equity withdrawal to net equity injection.
She added: "Looking ahead, the combination of tight credit constraints, falling house prices and weak consumer confidence is likely to keep
equity withdrawal falling for some time yet.
Separate BoE data showed that, overall, homeowners continued to inject money into their properties, which they have done since the start of the financial crisis, reversing the trend of home
equity withdrawal to fund other spending that had dominated the previous decade.
It said: "The fall in housing
equity withdrawal since the financial crisis is likely to reflect a fall in the number of housing transactions, with little sign that households in aggregate are making an active effort to pay down debt more quickly than in the past.
THE following events are scheduled to take place this week: Today Housing
equity withdrawal figures Tuesday Trading updates: Interserve, N Brown, Persimmon Chancellor George Osborne gives evidence to the Commons Treasury Committee Wednesday Trading updates: Balfour Beatty, Booker Thursday Finals: Begbies Traynor Trading updates: Dunelm, WH Smith Bank of England decision on interest rates Friday Trading update: SIG
The latter is important as it provides important information on the link between home
equity withdrawal and consumption.
Equity withdrawal enables homeowners to cash in on rising house prices by increasing their mortgages to convert some of the rise in the value of their home into cash.
But the sums are still large enough to have had an impact on consumer spending - just as they had boosted it in the years of
equity withdrawal.
It is only the third time that housing
equity withdrawal has been negative since 1998, with the rate at which people are repaying their mortgage accelerating from the third quarter, when net repayments of pounds 5.
